Since early August, EUR/USD has been in the consolidation phase, while the price was stuck between 1.1925 resistance and 1.6000 support area. But consolidation came to an end just a few days ago when EUR/USD broke above the key psychological level at 1.2000.
During the past 3 days alone, the price has risen by nearly 250 pips, which is quite a substantial increase for the EUR/USD. Right now, the pair is testing an average-price uptrend trendline, which could be acting as the resistance in the next days or even weeks. While it is too early to confirm the rejection of the trendline, considering the heavy uptrend, EUR/USD may continue to move higher.
Nonetheless, the rally has been strong, and some profit-taking could be ongoing right now, before the Nonfarm payroll, which is tomorrow. This can result in a correctional move down, which should also be strong. Overall, as long as EUR/USD daily closing price remains below the 161.8% Fibonacci resistance at 1.2260 and below the average-price uptrend trendline, a pullback should be expected.
This correction might result in a price drop towards one of the support levels based on Fibonacci and previous resistance levels. These are 1.2000, 1.1925, and 1.1860, as can be seen on the chart. Based on the Fibonacci cycles, the correction could be ending on December 26, which is 3 weeks from now. Then, a strong buying opportunity could be presented once again, but only as long as EUR/USD stays above 1.1740 support.
The alternative scenario suggests that EUR/USD will continue to rise. But for this, it must break above the 1.2260 resistance; in which case, the next upside target becomes $1.2660, confirmed by the 261.8% Fibonacci retracement level.
To summarise, the EUR/USD trend is strongly bullish, although a pullback could be quite healthy at this point in time. Buyers will remain in complete control as long as EUR/USD is above the 1.1740 low, produced on November 11.
Key support levels: 1.2000, 1.1925, 1.1860, 1.1740
Key resistance levels: 1.2180, 1.2260, 1.2660
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
During the past 3 days alone, the price has risen by nearly 250 pips, which is quite a substantial increase for the EUR/USD. Right now, the pair is testing an average-price uptrend trendline, which could be acting as the resistance in the next days or even weeks. While it is too early to confirm the rejection of the trendline, considering the heavy uptrend, EUR/USD may continue to move higher.
Nonetheless, the rally has been strong, and some profit-taking could be ongoing right now, before the Nonfarm payroll, which is tomorrow. This can result in a correctional move down, which should also be strong. Overall, as long as EUR/USD daily closing price remains below the 161.8% Fibonacci resistance at 1.2260 and below the average-price uptrend trendline, a pullback should be expected.
This correction might result in a price drop towards one of the support levels based on Fibonacci and previous resistance levels. These are 1.2000, 1.1925, and 1.1860, as can be seen on the chart. Based on the Fibonacci cycles, the correction could be ending on December 26, which is 3 weeks from now. Then, a strong buying opportunity could be presented once again, but only as long as EUR/USD stays above 1.1740 support.
The alternative scenario suggests that EUR/USD will continue to rise. But for this, it must break above the 1.2260 resistance; in which case, the next upside target becomes $1.2660, confirmed by the 261.8% Fibonacci retracement level.
To summarise, the EUR/USD trend is strongly bullish, although a pullback could be quite healthy at this point in time. Buyers will remain in complete control as long as EUR/USD is above the 1.1740 low, produced on November 11.
Key support levels: 1.2000, 1.1925, 1.1860, 1.1740
Key resistance levels: 1.2180, 1.2260, 1.2660
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.